Makers of HeightMax ordered to pay $1.9m

As part of its assurances that it will be tough on dietary
supplement manufacturers who market with false claims, the Federal
Trade Commission (FTC) has clamped down on a company that allegedly
hid assets to avert paying a full settlement.

Last November FTC charged both Sunny Health Nutrition Technology
& Products and Sunny Sia with making false and unsubstantiated
claims for three dietary supplement finished products - including
HeightMax - marketed to make children and young adults taller. The
companies agreed to pay $375,000 while a further $1.6m was
suspended by FTC when they showed inability to pay.
However, after the federal agency discovered Sunny had kept at
least $1.8m in an undisclosed account, it showed potential
infringers it means business and enforced the collection of the
full $1.9m.
The authority has repeatedly indicated it intends to step up
efforts to punish those dietary supplement companies that do not
respect regulations.
It rang in the New Year with a $25m-clamp-down on parties behind
the deceptive marketing of four major weight-control supplements:
Xenadrine EFX, CortiSlim, TrimSpa, and One-A-Day WeightSmart.
Then it its Fiscal Year 2008 Congressional Budget Justification
summary, FTC highlighted health products, including dietary
supplements, as a key area on which it will be keeping an eye. It
also announced it would be investing heavily in a consumer media
campaign to educate consumers to be more critical.
"Consumer demand for such products is increasing, and
fraudulent or deceptive claims about these products can pose risks
to consumers' well-being,"​ said FTC in its budget request
summary submitted to Congress on February 5.. "Going forward,
the FTC will continue its aggressive program by focusing its law
enforcement on violations that create the greatest risks to
consumer health." ​
Following the initial settlement, FTC found $1.8m Sunny had kept in
a PayPal account. Thanks to an avalanche clause in the first
judgement that required the redress payment of $1.9m if financial
statements were found to be inaccurate. FTC proceeded to freeze the
funds by means of a restraining order granted in December.
FTC has indicated it will set up a refund program for HeightMax
purchasers, using the settlement.